Correlation Between Tingo and Arax Holdings

Can any of the company-specific risk be diversified away by investing in both Tingo and Arax Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tingo and Arax Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tingo Inc and Arax Holdings Corp, you can compare the effects of market volatilities on Tingo and Arax Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tingo with a short position of Arax Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tingo and Arax Holdings.

Diversification Opportunities for Tingo and Arax Holdings

0.0

Correlation Coefficient

Tingo  Arax Holdings

Pay attention - limited upside

The 3 months correlation between Tingo and Arax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tingo Inc and Arax Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arax Holdings Corp and Tingo is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tingo Inc are associated (or correlated) with Arax Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arax Holdings Corp has no effect on the direction of Tingo i.e., Tingo and Arax Holdings go up and down completely randomly.

Pair Corralation between Tingo and Arax Holdings

If you would invest  73.00  in Arax Holdings Corp on October 22, 2024 and sell it today you would lose (1.00) from holding Arax Holdings Corp or give up 1.37% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Tingo Inc  vs.  Arax Holdings Corp

Tingo Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tingo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Tingo is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Arax Holdings Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Arax Holdings Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Arax Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tingo and Arax Holdings

The main advantage of trading using opposite Tingo and Arax Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tingo position performs unexpectedly, Arax Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Arax Holdings will offset losses from the drop in Arax Holdings' long position.

The idea behind Tingo Inc and Arax Holdings Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.